Don’t Be Fooled: Counter-Cyclical Stocks Still OutperformingMarch 03, 2015
This year, especially in February, there has been something of a cyclical bounce in the developed country stock markets. Since the beginning of the year, counter-cyclical stocks have underperformed cyclical stocks by 75 basis points in the MSCI World Index. However, when we look at it broken out by region we see that counter-cyclical stocks in Europe and in North America have both outperformed their respective regional cyclical stocks by nearly 2% this year. In addition, if we look at performance over the past year, we see that counter-cyclical stocks have outperformed cyclical stocks across all regions. Counter-cyclicals have been particularly strong in Europe and in North America.